Stellantis UK’s New Boss Faces Major Operational Challenges
Maria Grazia Davino, the newly appointed Stellantis UK group managing director, has identified significant operational issues within the company. Stellantis, formed through the merger of PSA and FCA in January 2021, is still in the process of integrating the two entities. This ongoing merger, combined with the integration of Vauxhall into PSA, has resulted in complex challenges for the company.
The Complexity of the Merger
The merger of PSA and FCA has brought together three companies and three systems across multiple brands. As a result, Stellantis is facing logistical, aftersales, and payment system issues that have caused confusion and problems for their network. Maria Grazia Davino acknowledges that the speed at which the merger took place has contributed to these challenges and emphasizes the need to resolve them as soon as possible.
Short-Term Goals for Stellantis
Maria Grazia Davino’s immediate focus is on growing market share and increasing customer satisfaction for the Stellantis brands. In the short term, Stellantis aims to achieve 22% of total sales from electric vehicles by 2024. Failure to meet this target will result in fines of £15,000 per car. Davino states that Stellantis will not purchase credits from other manufacturers or defer sales to 2025, highlighting the need to stimulate demand for EVs through attractive offers and educating buyers about the advantages of electric vehicles.
The Importance of Individual Brands
Davino emphasizes that each brand within Stellantis has a long-term future and plays a crucial role in the company’s success. While Stellantis will remain in the background as a name and not be promoted as a brand itself, each individual brand must deliver on its own business plan. Davino highlights the significance of Vauxhall as Stellantis’s largest brand in the UK and expresses the privilege of having a domestic brand within the company.
Challenges and Opportunities for Each Brand
Davino acknowledges that some brands within Stellantis face specific challenges. Peugeot is performing well but has room for improvement, while Citroën can contribute to Stellantis as an entry-level brand. Fiat has faced operational issues but now offers the right products. DS and Alfa have room for growth, while Jeep’s success in the UK could be defined by the Avenger model.
Additional Responsibilities
In addition to her role as Stellantis UK group managing director, Maria Grazia Davino is also responsible for Stellantis’s used car Spoticar business, the van division, and the Ellesmere Port and Luton plants. She commutes to the UK from Italy and is dedicated to advocating for specific UK solutions within the global company.
A Vision for the UK Automotive Industry
Davino believes that the UK automotive industry is at a pivotal moment and can become a world leader in electrification. She emphasizes the importance of collaboration between corporations and politicians to understand the impact of decisions on businesses. Davino is committed to pushing for the success of the Ellesmere Port and Luton plants as part of a thriving UK EV manufacturing industry.
Overall, Maria Grazia Davino’s appointment as Stellantis UK’s new boss brings a fresh perspective and determination to overcome the operational challenges faced by the company. Her focus on individual brands, stimulating demand for EVs, and advocating for specific UK solutions demonstrates her commitment to driving Stellantis’s success in the UK market.